3M receives state aid for expansion of Ames plant

State economic development officials have approved financial assistance to 3M to help the company expand its operation in Ames.

State economic development officials have approved financial assistance to 3M to help the company expand its operation in Ames.

The Iowa Economic Development Authority Board awarded the aid to 3M on Friday. It was part of a package totalling more than $212 million awarded to nine Iowa companies that will assist in the creation of 318 jobs.

The board awarded 3M tax benefits up to $1.28 million from the High Quality Jobs Program to buy and install equipment at its Ames plant, which makes sandpaper products. It will allow the company to consolidate some of its processes in order to free up space for the additional manufacturing, the state said.

The expansion is valued at $28 million and is expected to create 75 jobs. No local matching funds were required.

In a news release Friday, Gov. Terry Branstad the financial awards are a sign that “we’re on the right track with out economic development efforts.”

IEDA Director Debi Durham said it also shows that companies find Iowa an attractive place to do business.

“We continue to work toward our goals and promote Iowa’s competitive business climate,” Durham said in the release.

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